Background Image
Previous Page  146 / 158 Next Page
Information
Show Menu
Previous Page 146 / 158 Next Page
Page Background

page

144

FIMA CORPORATION BERHAD

(21185-P) |

Annual Report

2016

NOTES TO THE FINANCIAL

STATEMENTS 31 MARCH 2016

(contd.)

35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)

(b) Foreign Exchange Risk

The Group operates internationally and is exposed to various currencies, mainly Indonesian Rupiah.

Foreign currency denominated assets and liabilities together with expected cash flows from highly

probable purchases and sales give rise to foreign exchange exposures.

Foreign exchange exposures in transactional currencies other than functional currencies of the operating

entities are kept to an acceptable level. There are no material unhedged financial assets and financial

liabilities that are not denominated in the functional currencies of the Company and its subsidiaries.

Sensitivity analysis

The following table demonstrates the sensitivity of the Group’s profit net of tax to a reasonably possible

change in the Indonesian Rupiah (“IDR”) exchange rates against the functional currency of the affected

group companies (“RM”) with all other variables held constant.

The carrying amounts of the Group’s financial assets and liabilities denominated in foreign currency are

as follows:

2016

2015

RM’000

RM’000

IDR

Assets

- Trade and other receivables

21,841

19,857

- Cash and cash equivalents

18,427

45,089

40,268

64,946

Liabilities

- Trade and other payables

7,843

18,275

Group

2016

2015

Effect on

Effect on

profit

profit

net of tax net of tax

RM’000

RM’000

IDR - strengthens 5% (2015: 5%)

1,621

2,334

IDR - weakens 5% (2015: 5%)

(1,621)

(2,334)